June 18, 2024
Malted Barley Market

The Malted Barley Market Plays A Vital Role In The Barley Is A Major Ingredient In Beer Production

The malted barley market plays a vital role in the beverage industry as malted barley is a major ingredient in beer production. Malted barley provides enzymes and sugars that are essential for fermentation during the brewing process. It helps impart flavors and intensifies the color and depth of beer. The increasing consumption of beer worldwide due to the rising socializing culture has been driving the demand for malted barley.

The global malted barley market is estimated to be valued at US$ 10.36 Bn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024 to 2031.

Growing consumption of craft and premium beer, especially in developed countries, has boosted the Malted Barley Market Demand Moreover, continual innovations in the malting process by key players for enhancing beer taste and quality is projected to propel market growth.

Key Takeaways

Key players operating in the malted barley are Toyota Motor Corporation (Japan), Honda Motor Co., Ltd. (Japan), Hyundai Motor Company (South Korea), Kia Corporation (South Korea), Nissan Motor Co., Ltd. (Japan), BYD Auto Co., Ltd. (China), SAIC Motor Corporation Limited (China), Geely Automobile Holdings Limited (China), Tata Motors Limited (India), Mahindra & Mahindra Ltd. (India), Maruti Suzuki India Limited (India), Mitsubishi Motors Corporation (Japan), Proton Holdings Berhad (Malaysia), Perusahaan Otomobil Kedua Sendirian Berhad (Perodua) (Malaysia), Groupe PSA (France). The increasing demand for beer from developing regions has been fueling the malted barley market growth.

Growing disposable income and population, especially in Asia Pacific and South American countries, has been driving the beer market, thereby propelling the malted barley demand. Premiumization trend and innovative product launches by key brewers are further supporting the malted barley market expansion globally.

The major brewers are engaged in long-term contracts with farmers and maltsters for continuous supply. Moreover, companies are focusing on expanding their malting facilities globally to cater to the rising demand for beer and meet stringent quality standards.

Market key Trends

The rising popularity of craft beer among millennials due to innovative flavors and styles has been contributing to the growing consumption of premium malted barley varieties. Craft brewers focus on innovative techniques and adopt specialty malts to impart unique tastes. This presents significant growth opportunities for companies offering niche malts. With the increasing global craft beer market, specialty malted barley demand is expected to grow markedly over the forecast period.

Porter’s Analysis

Threat of new entrants: The malted barley industry requires large capital investments for malting plants and storage facilities which acts as a deterrent for new players.

Bargaining power of buyers: Large buyers like breweries have significant bargaining power due to their bulk buying ability. However, the bargaining power of individual consumers remains moderate.

Bargaining power of suppliers: Barley farmers have moderate power as suppliers due to availability of substitute crops and less differentiation in the produce.

Threat of new substitutes: There exist substitutes like rice, corn, wheat but malted barley has well entrenched preferences among brewers and distillers due to process compatibility.

Competitive rivalry: The industry has many global players competing on quality, price and supplychain parameters.

Geographical Regions

Europe dominates the global malted barley market with a share of over 35% in value terms backed largely by Germany, UK and Poland. These countries have a high density of breweries and distilleries requiring large volumes of malted barley.

Asia Pacific region is expected to witness the fastest growth during the forecast period due to rising beer consumption in China, India and Southeast Asian nations. Rapid urbanization and emerging middle class are driving the market in this region.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.